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The Medicare True-False Quiz: Test Your Knowledge

Health care costs are one of the biggest concerns for retirees. For most American retirees, Medicare is their primary health care plan. Medicare is complicated, and understanding it is crucial to making smart decisions to help control health care costs. Unfortunately, research shows that many people don't. For instance, a report from The American College of Financial Services showed that only roughly 25% of those ages 60 to 75 could pass a retirement income literacy quiz that included a number of questions about Medicare.

The lack of literacy in retirement income planning in the United Sates indicates that many people are unable to make informed decisions about their own retirement and Medicare. Test your own Medicare literacy with this 10-question quiz.

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 1 of 10

If you are retired and receiving Social Security benefits, you will automatically get Medicare Part A and B when you turn 65.

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 1 of 10

If you are retired and receiving Social Security benefits, you will automatically get Medicare Part A and B when you turn 65.

According to the government’s “Medicare and You” resource, “If you’re already getting benefits from Social Security or the Railroad Retirement Board (RRB), you’ll automatically get Part A and Pa... Read more ˅

According to the government’s “Medicare and You” resource, “If you’re already getting benefits from Social Security or the Railroad Retirement Board (RRB), you’ll automatically get Part A and Part B starting the first day of the month you turn 65. (If your birthday is on the first day of the month, Part A and Part B will start the first day of the prior month.) If you’re under 65 and disabled, you’ll automatically get Part A and Part B after you get disability benefits from Social Security or certain disability benefits from the RRB for 24 months.”

A red, white and blue Medicare card should land in your mailbox three months before your 65th birthday or in the 25th month of disability benefits. Less ˄

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 2 of 10

Sally, age 65, is employed with a company with 10 other employees and is covered under her employer’s health plan. She likes her health insurance, and she decides to stick with it because there are no adverse consequences if she does not enroll in Medicare.

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 2 of 10

Sally, age 65, is employed with a company with 10 other employees and is covered under her employer’s health plan. She likes her health insurance, and she decides to stick with it because there are no adverse consequences if she does not enroll in Medicare.

If you are 65 or older and have health coverage through work but the company has fewer than 20 employees, by law Medicare becomes the primary insurance. Your company’s insurance plan would become the secondary payor, so it would only pay for what is not covered by Medi... Read more ˅

If you are 65 or older and have health coverage through work but the company has fewer than 20 employees, by law Medicare becomes the primary insurance. Your company’s insurance plan would become the secondary payor, so it would only pay for what is not covered by Medicare. That means if you don’t enroll in Medicare and instead stay in your company’s plan, in essence you may not have any coverage at all or very limited coverage.

If your company has more than 20 employees, you can stay on your group health care plan and have it be the primary payor.

So, if you are close to age 65, but not getting Social Security benefits or Railroad Retirement Benefits, you will generally need to enroll into both Medicare Parts A and B to have coverage. Your initial enrollment period to sign up for Medicare Parts A and B is during a seven-month window that begins three months before the month you turn 65 and extends through the three months after. If you miss this window you will have to wait for the General Enrollment period (Jan. 1 – March 31) for Parts A and B, which means that you could experience a gap in coverage, and you could pay a penalty for late enrollment in Part B.

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Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 3 of 10

Medicare Part B helps cover the cost of prescription drugs.

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 3 of 10

Medicare Part B helps cover the cost of prescription drugs.

Part B covers services from doctors, preventive services, outpatient care and other services. To get prescription drug coverage you will need to sign up for a Part D plan, Medicare Advantage plan or have coverage from an employer-provided plan.

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 4 of 10

One reason to purchase Medigap (Medicare Supplement Insurance) is to provide coverage for dental expenses.

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 4 of 10

One reason to purchase Medigap (Medicare Supplement Insurance) is to provide coverage for dental expenses.

Original Medicare (Part A and B) does not cover dental care, and Medigap policies do not cover any additional services or care not already covered by Medicare. Instead, Medigap helps you pay for certain out-of-pocket deductibles and coinsurance payments. If dental insurance is important to you, con... Read more ˅

Original Medicare (Part A and B) does not cover dental care, and Medigap policies do not cover any additional services or care not already covered by Medicare. Instead, Medigap helps you pay for certain out-of-pocket deductibles and coinsurance payments. If dental insurance is important to you, consider that some Medicare Advantage plans do provide a level of dental coverage. Less ˄

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 5 of 10

All Medicare Part D plans are required to cover the same prescription drugs.

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 5 of 10

All Medicare Part D plans are required to cover the same prescription drugs.

Medicare Part D options vary greatly from plan to plan. Each one has its own formulary, laying out the plan’s list of covered drugs and tiers of coverage. Drugs in each tier also have different costs. So consumers have to do some research to find the best plan for their needs. Medicare actually ke... Read more ˅

Medicare Part D options vary greatly from plan to plan. Each one has its own formulary, laying out the plan’s list of covered drugs and tiers of coverage. Drugs in each tier also have different costs. So consumers have to do some research to find the best plan for their needs. Medicare actually keeps a website up that rates Part D plans in your area. Start by looking at the Medicare Plan Finder, which will search for plans in your area. Less ˄

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 6 of 10

Medicare Part B premiums can vary depending on your income.

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 6 of 10

Medicare Part B premiums can vary depending on your income.

You can pay higher Part B premiums for a variety of reasons, including paying a higher amount because of your income. According to “Medicare and You,” “You’ll pay the standard premium amount (or higher) if: … Your modified adjusted gross income as reported on your IRS tax return from 2 ye... Read more ˅

You can pay higher Part B premiums for a variety of reasons, including paying a higher amount because of your income. According to “Medicare and You,” “You’ll pay the standard premium amount (or higher) if: … Your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount. If so, you’ll pay the standard premium amount and an Income Related Monthly Adjustment Amount, also known as IRMAA. IRMAA is an extra charge added to your premium.” For the 2016 income chart, impacting your 2018 premiums, check out page 27 of “Medicare and You.” Less ˄

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 7 of 10

Medicare only covers stays in nursing homes in very limited situations.

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 7 of 10

Medicare only covers stays in nursing homes in very limited situations.

Lots of people tend to think if they have an extended stay in a rehabilitation facility after surgery, an illness or injury that Medicare will help with the cost. Well, that can be an expensive assumption, because the answer is not always yes. “Medicare covers semi-private rooms, meals, skilled nu... Read more ˅

Lots of people tend to think if they have an extended stay in a rehabilitation facility after surgery, an illness or injury that Medicare will help with the cost. Well, that can be an expensive assumption, because the answer is not always yes. “Medicare covers semi-private rooms, meals, skilled nursing and rehabilitative services, and other medically necessary services and supplies after a 3-day minimum, medically necessary, inpatient hospital stay for a related illness or injury.” Additionally, coverage only continues for up to 100 days, with the first 20 days fully covered, and days 21-100 requiring a co-pay of $167.50 per day (2018). After 100 days, you are on your own. Less ˄

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 8 of 10

One reason to choose Original Medicare over a Medicare Advantage plan is that with Original Medicare you can go to any doctor who accepts Medicare.

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 8 of 10

One reason to choose Original Medicare over a Medicare Advantage plan is that with Original Medicare you can go to any doctor who accepts Medicare.

With Original Medicare you can go to any doctor who accepts Medicare. But with Medicare Advantage plans you might need to use health care providers and doctors who participate in that specific plan’s network. Some plans will provide additional out-of-network coverage, but this can be limited.

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 9 of 10

Health Savings Accounts (HSAs) can be used to help pay for Medicare premiums and other Medicare costs, such as your deductible and coinsurance.

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 9 of 10

Health Savings Accounts (HSAs) can be used to help pay for Medicare premiums and other Medicare costs, such as your deductible and coinsurance.

While HSAs need to be funded before you begin Medicare coverage, you can use your HSA money once you enroll in Medicare to pay for deductibles, premiums, copayments and coinsurance amounts. So, while you are working, consider funding an HSA if you have a high-deductible hea... Read more ˅

While HSAs need to be funded before you begin Medicare coverage, you can use your HSA money once you enroll in Medicare to pay for deductibles, premiums, copayments and coinsurance amounts. So, while you are working, consider funding an HSA if you have a high-deductible health care plan and are eligible for an HSA. Less ˄

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 10 of 10

Each year during the Open Enrollment period a Medicare beneficiary can change Medicare Part D plans.

Quiz | The Medicare True-False Quiz: Test Your Knowledge

Question 10 of 10

Each year during the Open Enrollment period a Medicare beneficiary can change Medicare Part D plans.

This is true. Medicare Part D prescription drug plans can be changed during the Open Enrollment period from Oct. 15 to Dec. 7. Medicare Part D prescription drug plans can change the covered medications from time to time, so it is critical each year to make sure that the plan you’re on still covers... Read more ˅

This is true. Medicare Part D prescription drug plans can be changed during the Open Enrollment period from Oct. 15 to Dec. 7. Medicare Part D prescription drug plans can change the covered medications from time to time, so it is critical each year to make sure that the plan you’re on still covers your prescription drugs for the following year. It is also a time that you can shop for a more cost-effective plan. Medicare Advantage plans (which in some cases cover prescription drugs) can also be changed each year during the Open Enrollment period. Less ˄